CRIF Highmark a leading credit bureau released the fourth edition of ‘CRIF How India Celebrates Vol IV – Dec 2024’. How India Celebrates – Festive Lending in India is an annual publication by CRIF High Mark, offering in-depth insights into credit trends across India’s consumer lending landscape during the festive season (October to December). It serves as a vital resource for understanding shifts in borrower behaviour and lending strategies during one of the most economically active quarters of the year.
Key Insights from the Report:
- Among the top 10 states, Madhya Pradesh (+8.9%), Uttar Pradesh (+4.9%), and Rajasthan (+4.6%) saw growth in originations value, while Telangana (-10%) and Karnataka (-8%) recorded the biggest declines.
- The share of unsecured loans in overall originations declined across most major states, suggesting a shift toward conservative lending. Karnataka was the only state that resisted this trend, with its unsecured loan share increasing from 33.6% in Q3 FY24 to 35.4% in Q3 FY25. Andhra Pradesh continued to record the highest proportion of unsecured loans at 43.1%, whereas Gujarat remained the lowest at 20.5%.
- City-level analysis revealed that Delhi NCR remained the leader in overall origination value. Auto loan disbursals in the region rose by 11.4% YoY, contributing to its sustained dominance. On the other hand, Chennai posted the highest share of unsecured loans among top cities at 36.7%, while Bengaluru showed a notable uptick in personal loan share (from 29.6% to 32.1%), even as it faced a steep 16.8% YoY drop in home loan originations.
- Several urban markets faced pressure in housing loans, with Hyderabad (-12.3% YoY) and Bengaluru showing significant declines. In contrast, cities like Jaipur showed promising growth in auto loans (14.6% YoY) albeit from a smaller base.
- The report highlights the growing importance of BT100 cities (beyond the top 100 by loan portfolio size), which saw increased origination values in Two-Wheeler, Personal, Consumer Durable, and Auto Loans. These cities are becoming crucial demand centers as financial inclusion deepens and consumption expands into smaller markets.
- Despite relatively higher property prices, the top 8 cities continued to dominate Home Loan origination values. However, their collective share experienced a slight decline, indicating a gradual diffusion of demand toward non-metro areas.
Commenting on the findings of the report Mr. Sachin Seth, Chairman, CRIF High Mark and Regional Managing Director – CRIF India and South Asia said “This year’s report captures a turning point in festive lending. While the spirit of celebration continues to fuel credit demand, the shift toward responsible lending is clear. Lenders are focusing more on creditworthy borrowers, PSU banks are strengthening their presence in secured products, and NBFCs are expanding reach in smaller-ticket and deep-market segments. The rise of low-risk profiles and the growing contribution of emerging cities show how India’s credit ecosystem is evolving, becoming more inclusive, and more resilient.”